To avoid any uncertainty, you should always prepare a contract of employment that sets out the key terms and conditions of employment.
Your friends or family members may have high expectations in relation to their wages, you should consider this before making offers of employment.
All employees – whether they are family, friends, or not – are entitled to the same termination and redundancy entitlements. Don’t sack anyone without going through the proper process and the necessary amount of notice.
If you plan to employ children, you may be required to apply for a ‘Working with Children’ authorisation from your state or territory government. Working for pocket money doesn’t count.